Aditya Birla Real Estate Ltd

MR. HARSH PATHAK – EMKAY GLOBAL FINANCIAL SERVICES LIMITED

Ladies and Gentlemen, Good Day and Welcome to the Earnings Conference Call of Aditya Birla Real Estate hosted by Emkay Global Financial Services Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*”, then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Harsh Pathak from Emkay Global Financial Services Limited. Thank you and over to you, sir.

Thank you. Good morning, everyone. On behalf of Emkay Global Financial Services, I welcome you all to the Q4 & Full Year FY25 Earnings Conference Call of Aditya Birla Real Estate.

I would like to welcome the Management and thank them for this opportunity. We have with us today Mr. RK Dalmia – Managing Director Mr. K.T. Jithendran – Managing Director and Chief Executive Officer, Birla Estates, and Mr. Snehal Shah – Chief Financial Officer.

I shall now hand over the call to the “Management for the Opening Remarks.” Over to you, gentlemen.

Good morning, everyone, and welcome to the Earnings Conference Call for the 4th Quarter and Financial Year ending 2025.

The board has also approved Divestment of its Pulp and Paper business, which further sharpens balance sheet and management focus towards real estate and will lead to long term value creation.

I am sure you must have gone through the financial performance so I can directly move to highlight our real estate business. The Indian real estate market continue to demonstrate resilience and steady growth, supported by stable macroeconomic environment, rising urbanization and involving lifestyle aspiration, with right projects, right location and trusted brand names are continuing to witness healthy traction.

In parallel, there is a growing emphasis on sustainability and innovation. Green building practices, energy efficient design and smart infrastructure are increasingly influencing both buyers difference and regulatory framework. These are all parameters that we have built in our business model and portfolio apart from being guided by strong return guardrails.

In Q4 Financial Year ‘25, the real estate business performed exceptionally well with stellar sales at our three new projects and two new phases launched across NCR, Bengaluru and Pune regions.

Booking value doubled on the year to Rs.5,738 crores. Collection too grew by more than 100% to Rs.1,073 crores.

For the full year Financial Year ‘25, the booking value more than doubled to Rs.8,087 crores on the back of our seven projects phase launches. Our collection increased by 100% year-on-year to Rs.2,706 crores.

The number of units sold, and area sold per square feet grew by three times versus Financial Year ‘24.

The revenue for the year grew by 11% year-on-year to Rs.1,157 crores. Added projects having GDV of more than Rs.25,000 crores, taking the total GDV of company close to Rs.70,000 crores. This number speaks about our strong business momentum and trust our customers, partners, and stakeholders have placed in us. Importantly, the Birla brand has been a key success factor in our related journey.

This year we have also elevated our brand visibility like never before. As the principal sponsor of Royal Challengers Bengaluru in IPL 2025, we took the Birla Estate brand into millions of homes.

The impact was both emotional and strategic, amplifying our reach and deepening our brand connect.

In other updates, we have raised USD 33 million with Mitsubishi Estate Company for the Development of Birla Evara, Bengaluru. This joint venture has a strong vote of confidence from one of the largest, most respected global real estate business investors. We will explore such opportunity going forward. Building on all these levers, we also strive to achieve over Rs.15,000 crores in the next few years in annual pre-sales.

And in the backdrop of such a strong business execution, we are equally proud to have also been conferred the Prestigious Golden Peacock National Quality Award for the Year 2025, becoming the first real estate company to be honored in the last six years. As we look ahead, we are gearing up for the next stage of growth.

We are exploring the redevelopment space in a meaningful way which we believe can unlock asset light deals for us. We are also exploring expansion of our commercial real estate portfolio, which opens a new annuity income stream and bring us closer to our vision of being a holistic real estate platform. Given all the factors I have just listed, I believe our real estate business is very well positioned for sustained and high quality growth ahead.

Now moving on to “Paper Segment.” As mentioned earlier, the Board of Directors of ABREL approved the Divestment of the Paper business through business transfer agreement envisaging a slump sale to ITC subject to consideration of Rs.3,498 crores subject to achievement of certain condition precedent. We expect the divestment process to conclude by Q2 Financial Year ‘26.

With that, I will now conclude our opening remarks and we can start the question-and-answer session. Thank you, gentlemen.

Thank you, sir. We will now begin with the question-and-answer session. The first question comes from the line of Amit Srivastava from B&K securities. Please go ahead.

Yes. Hi. Congratulations on a very good set of numbers in terms of the presales the way that we have achieved in FY25. So now I just want to take it forward for the next year. How are we looking at the presales number? And given a context, we are planning to launch around Rs.14,000 crores of GDV across eight, nine projects during FY26. If you can give the sequencing also that how these projects are going to be launched over the next fiscal year and what will be the guidance for presales as well as the project additions for FY26?

Yes. Thank you, Amit. Fair question. So as you know, we mentioned we are planning to launch around Rs.14,000 crores of new launch phases or new projects. Largely, this is up in the Q3 and Q4.

There may be a couple of launches we are trying to get into Q2. But since it is all largely skewed towards the latter half of the year, I hesitate to hazard a guess on the guidance number for this year.

What we are largely looking at is on a more three-year plan in which our aim is to reach around Rs.15,000 crores in about three years’ time. I think I will be more confident talking about larger horizon of time rather than giving you a very short term annual guidance because of the reason that so many factors are there and launches are all stacked towards the latter part of the year, so I would say that we will continue to grow in a phased manner, but it could go up and down and largely focusing on a three-year plan in which I think by the end of the third year, we should be having an annual sales of more than Rs.15,000 crores per annum, I mean, it was like doubling from what we did last year.

Sure, sir. In terms of the two large projects which we launched during Q4, one is in Gurgaon, second is in Bangalore. So Gurgaon has got a very strong response. We have managed to sell everything,

whereas the Bangalore project response was slightly lower. So, can you give us understanding that what was the key reasons on different market responses, is the market is slower, one market location is better, if you can elaborate on that side?

What happened in NCR was truly exceptional. Nobody thought in a short period of time of 15 days we could have kind of cracked a 3,000 plus booking in such a short period of time. So that was really exceptional. What happened in Sarjapur in Bengaluru, it is a very remarkable performance in my view, because this has been the highest launch for us in Bangalore. Nowhere in such a short period have we clocked Rs.850-crores plus. All our previous launches, the phases were small, so we did Rs.500 crores or we did Rs.550 crores, etc., but this has been a humongous launch; we clocked Rs.850 crores-plus. So from our point of view, I think this has been a very, very successful launch. The time allowed us is just about a week there. So that was the reason. So that is if you may say that it could not reach what was like Rs.3,000 crores or something like that. But I think it was also a very, very strong response. We almost launched in the far end of the quarter.

There is no problem with the demand as such, or is the demand slowing down in the market?

Amit, demand continues to be very strong. I have always maintained that the right pricing, right location and combination of right brand, right design, right sizing, I think the market continues to have massive hunger or demand for such kind of products.

Okay. And sir, one more question is related to our cash flows. How would be the cash flow positioning for the upcoming year considering that what like we have done a deal of getting the paper business so that cash flow taking cognizance as well as the project collection and process, the planned Capex on construction spend, if you can highlight on the cash flow position?

Hi, Amit, Snehal here. See, our current consolidated debt stands at Rs.3,575 crores and roughly our networth is around Rs.3,900 crores. So the debt-equity is around 0.92. Now, post the paper business divestment cash flow coming in, we will have to actually repay close to around Rs.2,000 crores of debt, which is kind of tied in some way or the other the assets of the paper business. So the balance that comes will be held in treasury to earmark for the future growth capital of RE business. So thereafter we will of course be having cash flows from the collections, but I assume that also would be eaten up against the construction cost. So the major requirement is only for growth capital and therefore this balance amount remaining from the paper business will be used and if exhausted we will probably go for fresh borrowing because our leverage would have improved a lot.

I just wanted a clarification on this cash flow. So basically this Rs.2,000 crores paper debt is included in our net debt of Rs.3,500 crores or no?

Yes, yes, it is included. That is what I am saying. Yes, from Rs.3,500 crores, Rs.2,000 crores will go away and whatever is remaining with us after capital gains and everything Rs. 3500 crores if you are calculating coming from the paper sale, so, Rs.2,000 crores goes, Rs.300 goes, so around Rs.1,200- odd crores will be available to us in our treasury to pay for any growth that happens in the real estate business, but if it falls short, we will go for fresh borrowings.

And in terms of the collection versus construction spend for this year '26 if you have?

Sorry. Sorry, Amit, what is the question?

So how much is the projected collection in FY26 versus construction spend?

So we had a very healthy collection of almost Rs.2,706 crores, construction spend was about Rs.1,600 crores.

If you can give it for the FY26 also sir what is the projection if you have?

So as I mentioned, this is largely dependent on sales and since I am not giving a number for sales, I do not want to hazard a guess, but I can assure you that it will be a very, very healthy and strong growth in collections also largely based on our bookings so far and the progress we are making on construction.

Okay. Sure, sir. Thank you very much and I will come back in the queue.

Thank you. The next question comes from the line of Karan Khanna from Ambit Capital. Please go Yes, hi. Thanks for the opportunity. K.T., if you can give some qualitative thoughts on the footfalls conversion and the booking that you are seeing in this quarter? And specifically on Niyaara, can you please share the number of units that were sold last quarter? And as a follow up, what is the outlook going into FY26 -- are you still looking at year end launch for phase-III or will you look to move it to third quarter?

So first of all, as far as Niyaara is concerned, we all know that we have launched two towers. The first tower, we have sold 401 apartments out of the 414 apartments. So there is hardly any inventory left. And in Tower B, we sold 96 apartments out of 148 apartments. We had a very strong last quarter.

We did about 9 or 10 apartments in the last quarter, so we are at 96. So I think the demand remains steady. Despite that most of our very prime inventory is sold. The demand remains steady and we

are very excited and looking forward to our launch of the third tower, most likely this will happen in Q3 end or early Q4.

And in one of the slides, K.T., you mentioned that your Birla Vanya is the only project that is expected to be delivered this financial year. Given the kind of growth and the business development that you have done in the last few years, will FY26 the focus be towards more of BD and launches or will you shift gears and focus toward the execution of the existing projects?

Thank you, Karan, for this question. So let me tell you that our focus always has been and will continue to be on execution. I think good BD and sales happen on the back of very strong execution.

We have delivered three projects so far; one is that Birla Vanya in Kalyan, Birla Alokya in Bengaluru and the first phase of Birla Navya in NCR. All these phases have been delivered well within the RERA timeline and has been very well appreciated with a very strong NPS score. It is not happening now. Alokya and Navya both this NCR and this thing projects has been completed and largely delivered and profits booked. In Vanya, we have some flats yet to be sold and for that our income recognition will come in for that residual part for this year and some part of our customers are not paid fully, there is more than 20% to be paid. That kind of will come this year. We had not scheduled for any kind of handovers this year. There will be a modicum of handovers from Birla Tisya and a new phase of Navya coming up in the next financial year. I think largely big delivery will be of Niyaara Tower-1 in FY28. So just because there is no delivery in a particular year, does not mean that focus is not there. As mentioned in Mr. Dalmia's speech, we have got the Golden Peacock Award for Quality Systems, the only real estate company in the last several years we have been conferred upon that as a company. So that speaks well about our execution, quality, timelines, everything that is extremely focused on. We are also very proud to say that we have met all our budget costs during this period of time. I don’t think there is a lack of focus, in fact there has been extreme focus for us has been execution and design.

I think this is helpful. I think thanks for the clarification. The second question is on Bangalore. Given you have exhausted most of the launches here barring Trimaya phase-IV, which is expected this fiscal year, what are the expectations on business development in this market for FY26 and any guidance on FY26 business development that you would like to share overall?

Yes. So I think we are totally focused on continuing to build our GDV banks because as our sales as you mentioned have been very strong and we have a very strong pipeline of launches lined up for this year. So, I think our focus will continue to be in BD. Last year, added GDV worth about Rs.25,000 crores. This year we are looking at, at least about Rs.15,000 crores to Rs.20,000 crores, new GDV to be added and it will be focused in all markets, wherever we get the right deals, be it Bengaluru, be it NCR, be it Bombay or Pune, our focuses in all these four markets equally.

And then last question is on Noida Sector 150. Any development post the intervention by regulatory authorities and do you see this project getting added to your portfolio in the next four or five years given the complications that are associated with it?

Looks a little dicey because it has not made much progress from where we had, during the time we have signed, it is still hanging in balance, so it is 50:50, I am not too confident about concluding this deal. The agreement expires in some time later this month. So we will have to evaluate it in a fresh manner.

So this is helpful, K.T. I will come back in the queue for any follow-ups. Thank you and all the best.

Thank you. The next question comes from the line of Akash Gupta from Nomura. Please go ahead.

My first question was on the Niyaara Tower launch. So there is Godrej coming up and then there is also Prestige. So I just wanted to understand your plans for the Niyaara third phase, like how will this tower be different from the first two phases, are you planning to change dimensions or anything? That is my first question, sir.

Okay. So Akash, yes, the competition has heated up in this region, there are lot of very high end apartments coming around in this micro market. However, our traction as I mentioned a little earlier has been very strong for Tower-B, but it is always good to bring in something new. So we are still not in a position to disclose that, but we are bringing in a changed format for Tower C.

Okay. My second question is with respect to the Mathura Road project also. So what is the status of that project? And my third question is with respect to Sarjapur. So we launched that in the far end of the quarter. So can we expect the balance Sarjapur sales in this quarter of the financial year?

Okay. About the India Hume Pipes Mathura Road Project in Delhi, unfortunately, it is still stuck in the approval stage. We have not been able to make much progress there. We need a standing committee to be appointed and the project to be cleared by that. We were hopeful with the new formation of the new government this will speed up. Unfortunately, it has not happened. We have not taken it in this year's launch calendar also, but we are trying our level best to sort of get it going.

The good part is that because being a JV, there is not much capital locked in it, hardly anything.

Because we think it is a very attractive and a very strong market, all efforts are going on to circumvent this challenge that we are facing. That is about India Hume Pipes Project. Sarjapur, yes, it was launched in the far end and we are expecting sales continues to happen. Only thing is that the new phase, the team, the challenge, the channel partners, recoup is happening at the beginning of the new quarter. But I think the sales continues to happen and we expect a reasonable amount of traction continuing in this project.

Understood, sir. Best of luck for the new financial year sir. Thank you so much. Thank you, Akash.

Thank you. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go Yes. Thanks for the opportunity. First question, continuing on this Sarjapur, it mentions that we have launched it fully, but it seems like we did not open much of inventory, so just wanted to understand how much we opened to have this Rs.860-odd crores kind of a sales there?

Barring three towers, we opened four towers at the beginning to just focus on that because time period was very short. So right now we are focusing on those and once we get reasonable volumes there, we will open up the other towers also.

And four towers would have a value in terms of GDV of Rs.1,000 crores or more than that or -?

I do not have that number here. Maybe we can give you those numbers offline for the first four towers in Sarjapur.

No worries. Okay. Just trying to understand the cash flow details that you have given in slide #34.

So we did a project development cost of around Rs.6,000 plus crores and you mentioned earlier that Rs.1,600 crores is what we spent for construction. So rest is the FSI purchase that we did, is that the right understanding?

Other than construction finance, it includes BD cost of the projects that we have acquired. A significant part of that about close to Rs.1,300 crores is towards the Worli acquisition, 10 acres. And we can give you a breakup of the other cost. K.T., do we have the other cost other than project or something?

Yes, roughly that is the way, rest is I mean, Rs.2,000 plus what do you call it construction, how much we spent on construction, Rs.1,600 plus Rs.1,300, so that is close to Rs.3,000 crores, right and balance Rs.3,000 crores for the other projects that we have acquired.

Okay, okay So basically it also includes the BD cost that we have incurred? Yes.

That is what I wanted to know. Okay. And just one last on the launches slide, you have given GDV estimate of 26. This I suppose also includes the inventory which is there in the project or Rs.14,000 crores is all new projects that we are looking to launch?

So Rs.14,000 is the new launches plus the sustenance inventory is also there. This is just the new one we are bringing to the market.

Okay, okay, fair enough. That is all from my side and all the best.

Thank you. The next question comes from the line of Hitesh Doshi from Nirzar Securities. Please go Yes. Good morning to everyone and congratulations on great sale numbers. Thank you, Hitesh bhai.

So my question is what is the sustenance inventory if you suggest?

Roughly about Rs.6,700 crores, Hitesh bhai.

So in a way will you make projects available worth Rs.20,000 crores in the entire next 12 months? That is right.

Okay. And how far we are from receiving money from the ITC deal or there may be some negative surprises over there?

We do not expect any negative surprise as of today, Hitesh bhai. We expect the closure to happen somewhere by the end of July and if it happens in July, then a month or so to receive the money. So hopefully in August we should be closing. So there can be no negative surprises other than maybe a slight delay in the closure of the deal.

We have Rs.20,000 crores worth of goods to be sold in current year, which will be launch plus inventory. So we should be hopeful of at least crossing what we had done last year? No comments, Hitesh bhai.

Okay. Wish you all the best, sir. Thank you so much.

Thank you. The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.

Hello. Yes. Thanks for the opportunity. Sir, my first question is in our earlier interactions in some of the calls you have mentioned that the Worli project, the cost of construction is around Rs.20,000 a square feet. So wanted to confirm this is on a salable area you mentioned or it is on a carpet basis?

So I have always mentioned costs on salable area. I said in the region of about Rs.25,000, starts with Rs.20,000 that it may go up by the finished projects get concluded into about Rs.25,000.

So Rs.25,000 approx. cost on salable, whereas the realization would be around Rs.80,000.

What I have said always is that by the time we complete this construction over the next six, seven, eight years, we will achieve an average price over Rs.50,000 and a cost approximately about Rs.25,000 maybe including all inflation. So we should get close to maybe 45-50% margins, that is what I have maintained.

And when we say this Rs.25,000 cost, this will include marketing and everything. So this entire cost will come when the revenue recognition will happen or some of these costs is even recorded currently because we are showing losses in the current quarter?

So Dixit, what happens is of course a significant cost is always put in work-in progress, but there are certain launches cost, advertising cost, etc., which we incur during the year for the launches. So those costs get written off in the P&L account. Because we had lot of launches this year, particularly in the last quarter, so therefore we had a significant amount of expenses which we had to charge in the P&L account and that is one of the reasons why we have a little softer EBITDA margin. So all these launch costs, etc., those things are written off in the P&L.

Okay. We have given nine projects for FY26 planned launches. If you can give a GDV wise the different projects?

I can name which are the projects. GDV project wise will take a lot of time. We can do it offline. We are doing a new phase of Birla Trimaya in both phases. In Mumbai, we are going to do the first phase for our Thane project which we had signed with Hindalco. A new tower in Birla Niyaara we are planning to launch. We signed a large project plotted development in Boisar near Mumbai which also we are planning to launch. We are planning to launch two phases in Pune, Birla Punya, which we launched the first phase in March. We are hoping to launch two more phases there. Then the other

project in Pune which is located in Manjri we are planning to launch that too. So there will be three launches in Pune. In NCR, Arika phase-I is literally sold out. So now we are gearing up to launch the next phase of Arika. And the new project which we had signed last year in Gurgaon, which is Sector 71, so that also we are planning to launch.

Okay. And recently there was some regulation regarding NGT approval. They have mentioned that around Vikhroli, Thane area, environmental clearance will be required from central government. So can that impact our Thane project?

Yes, yes. We have applied to central government. Our project has come under that. That is why it has got little impact. Otherwise we were planning to launch it in the last financial year. So we have applied to Delhi for our clearance. Okay, fine. That is it from my side.

Thank you. The next question comes from the line of Siddhant Chhabra from Minerva Asset Advisors. Please go ahead.

Hi. Thanks for the opportunity. My question is, I know that we have divested paper and pulp business, but I just have a small question on some intricacies there. Firstly, is regarding the wood price I have seen that in the presentation there has been a decline by 6% quarter-on-quarter and as well year-on- year. So what is the kind of expectation? I know that we have divested it, but some kind of expectation of this price going forward maybe over the next six to 12 months.

So right now particularly on the pulp and paper business in terms of input price as well as imported pulp price, we expect it to stabilize, but we do not expect it to come down drastically.

So any range you could provide, possibly what is your expectation would be from here?

It will be difficult to provide a range at the moment because you see the markets, they are all volatile.

So it is very difficult to predict right now. So what we can only do is keep a close watch and if there is a significant change, we can look at market correction of our realization.

Okay. So we are expecting some further downward movement in import prices for like paper and pulp? Yes.

Okay. And secondly, I wanted to ask regarding the market outlook that you have written in the investor presentation, there is increased competitive intensity from Indonesia and Thailand. So, this would be in board and tissue, or it would be in the uncoated paper as well? Mostly in board.

Okay. In your understanding, this is expected to continue to be a factor throughout the year going forward or is this maybe a short-term kind of headwind?

Expected to continue. The association is talking to the government to have some sort of a minimum import price and even anti-dumping, etc., So let us see how that progresses.

Right. I just had one small thing. It is a data point that I would need. So maybe if I could reach out to you post the call, But I just wanted to know in terms of the input price by area what the kind of wood price would be? So I mean if you would not have it now, I could possibly reach out to you after the call is done. Yes, please reach out. Okay. Thank you.

Thank you. The next question comes from the line of Amit Agicha from HG Hawa. Please go ahead.

Good morning, sir. Congratulations, sir, for blockbuster sales. Sir, my question was with regarding to the Mitsubishi tie-up like you have raised Rs.275 crores. It is a JV or loan taken from them?

No, it is not a loan, it is an equity participation by them. What would be our share?

So 51 is ours, 49 is theirs. So it is project level equity participation. Structuring is done in a certain way, but actually it is a 51:49 and we get 8% DM fee.

Can you share some outlook on EBITDA margins for the FY26?

In FY26 there is no handover happening up. So there will not be too much emphasis on EBITDA.

Collections are going to be strong, sales we are focusing on, but the bulk of the EBITDA will happen in the future year. We do not expect much of EBITDA because of the way the project completion method accounting is done. We do not expect too much of EBITDA to come in, in FY26.

Thank you for answering, sir. All the best for the future.

Thank you. The next question comes from the line of. Biplab Debbarma from Antique Stock Broking. Please go ahead.

Good morning, everyone. Good morning, K.T., sir and Snehal, sir. My first question is regarding Pune projects. So Pune is a new market to us. So my understanding is we have launched the first phase in Pune of around 400. So how is the Pune market when you compared to say Bangalore and Mumbai and NCR market that where you have done exceedingly well and how is your response regarding the story of Pune alone?

Thank you, Biplab. So again the story of the last quarter has been that most of the launches was stacked up to the end of the year. Of the 400 limited inventory that we launched because of certain approval changes which happened in the Pune development rules, we could launch only 400, but we sold 75% of that inventory. So it has been a very, very strong response for us and we continue to expect that kind of response in our upcoming launches in Pune. And about the market, sir?

Market is very strong, holding very strong, I think it is a very resilient market, very strong demand, much like the Bangalore market, it is the third largest market in India, and we are very bullish about this market.

And second question is on the deals. I am sure you are getting a lot of deals, using all the deals and analyzing all the deals. But if you could give us some insight in terms of deals in the next few quarters, do we expect a few large deals or something that can that be closed?

Yes, I mean, at any point of time, we have a certain amount of term sheets signed and we are looking at converting them. We are also attempting to convert something this quarter, lots of them in the coming quarters. We are also now largely focused on getting redevelopment deals in Mumbai. We are making good progress there. Hopefully either in this quarter or maybe next quarter, we may be able to announce our first successful…. I am hoping to do that. We may do something this quarter, or it may spill over to the next quarter, but I think we have a healthy pipeline and we expect to close some good deals very soon.

Sir, third question and a final question. Since you post the topic of redevelopment, see, most of the Mumbai developers, all the reputed developers, they are also focusing on redevelopment projects.

So, do you see lot of supply from redevelopment project itself or would there be stiff competition in redevelopment projects amongst the greater developers, how is the redevelopment market, is it really happening at a faster pace?

I think South Mumbai is really opening up because of the infrastructure development and connectivity which has substantially improved towards that area. There is increased competition in that market. Top developers are all aiming to do that. However, I feel there is enough room because the size of these are relatively much smaller. So the inventory which will come out of each of them will be limited. But I think one can create a strong market share, positioning there and then trust plays a very significant factor. So I think we definitely have an edge over there and that is what we are experiencing that. Our brand equity works very well in that segment.

Thank you. Congratulations and all the best, sir.

Thank you. The next question comes from the line of Amit Srivastava from B&K Securities. Please go ahead.

Yes. Thank you for the follow-up. First, just one clarification. You have mentioned that Birla Niyaara the square feet cost would be around Rs.20,000, 25,000. So just wanted to understand that what are the costs we are including in that for that Rs.20,000, Rs.25,000?

All cost, development cost, cost of land cost, cost of premium FSI, overheads, marketing and sales cost, of course, the construction cost, approval cost, design cost, overheads, inflation, material inflation, all of that.

Got it. So one clarification is related to our provision which we have done for around Rs.114 crores for our JV in Birla. So considering that we have a pretty investment of only Rs.25 crores in that business and we have recently commissioned that project, so what is this pertains to this liabilities of more than that -- it is operational liability or any other item which was done?

Basically, the JV which we had, that JV was dependent a lot on our existing textiles business which used to supply yarn to it as well as certain utilities were shared. But post-closing of our textile divisions, it became unviable for the JV also to continue. So we have now therefore decided to close, I mean sell the JV away and right now have estimated its liabilities to be in the region of close to around Rs.228 crores. etc., So both the partners will be contributing equally to that particular liability.

Also, we already have Rs.50 crores of capital. So, we will have to invest another Rs.89 crores each into the JV. So that particular Rs.89 crores is what we are considering as a provision. We have already accounted for a loss of about Rs.8-9 crores in the first quarter. So the net amount that we have to provide is about Rs.81 crores. And the second, so if you see the number of Rs.124 crores, so Rs.81

crores is this and the next Rs.43 crores is with respect to the carrying cost we had of the property, the only lease land which is now as per the Supreme Court we have handed it over to the BMC. So we have to write off that particular carrying cost of that particular property. So these are the two major exceptional items. So 81 plus 43 is 124 crores is what we have provided. Hope that helps.

Yes, yes, sir. Thank you for the clarification. That is it for my side.

Hi, sir. Thank you for taking a follow up question. Sir, with respect to a launch guidance of Rs. 140 billion, do you think there is any downside risk to this launch guidance, for example you are waiting for central government approval for that Thane project. So my first question is how confident are we of this Rs. 140 billion launch guidance?

Akash, see, at this point of time we are very confident and quite positive. All of this is going to happen as we have planned it, but seeing approvals of things to prop up and this may get more jacked up towards the last quarter, theoretically, some of them may spilled over to the Q1. As of today, there has been no such signs. But in approval thing you can never totally, totally be assured. It will happen in time. Everything is progressing as per plan as of today. We expect all of them and we are fairly confident, but it is possible that that one or two of them may got spilled over to the following quarter of the next year. Having said that, Akash, I wanted to do one clarification. Akash and Pritesh both of you had asked for about Sarjapur how much we launched, etc., So I have said four towers, but actually it is four blocks which we have launched, each block is of two towers, so we have launched about seven towers and what we have balanced, we have kept for later launches of six towers. The overall is 13 towers divided into four or five blocks, I wanted to give that clarification.

I see because in the PPT for Sarjapur we saw that I think the entire project was launched, that is what the PPT showed for the Sarjapur project.

Akash, you are right. We have one RERA number for the entire 13 this thing. One RERA we are planning to launch the whole thing, but we decided to focus more to maximize our revenue, etc., on the first seven towers because of the paucity of time as the RERA came in at a very late stage.

What were the project level EBITDA margins for the 4th Quarter revenue that we booked? 33% depending on various projects. I think our projects had a very high margin. Kalyan being where it is, pricing Kalyan at a lower margin, but that is the range.

Understood, sir. Great. Thank you so much.

Thank you. The next question comes from the line of Ronald Sioni from ICICI Securities. Please go Yes. Thank you sir for the opportunity and congratulations on great set of numbers. Actually I had a query on the business development guidance which you had given about Rs.15,000 crores to Rs.20,000 crores. Does this include redevelopment projects because redevelopment projects will not need much of the capital? Another related question would be, are you being a little bit conservative considering generally around 10%-odd land cost is there and you will have about Rs.1,200-odd crores to invest in the coming financial year, so this BD guidance, is it conservative?

I think it is realistic. I would like to say as I said our approach towards new deals is a little conservative in terms of what I have always mentioned is that we do not take any risk other than the market risk, very particular about location, title, access, zoning, even the land prices, the micro markets we choose, the kind of competition there is. So from that point of view we are a little more choosy about our BD deals. This also includes the new segment that we are planning to enter, which is the redevelopment sector. Having said that, I mean funding has never been a constraint. So, I think we are reasonably confident that we should be able to achieve this.

Yes, thank you. And uh, last question would be on your three years target of reaching Rs.15,000 crores, but as your overall vision is to be in the top league of the developers and what we are currently seeing is that local unlisted, but organized players are also really moving at a very fast pace and trying to cross Rs.10,000 crores of presence. So how does you stack up versus organized and unorganized large players in terms of your overall vision of being in the top league?

So I think what we are talking about is almost like doubling our current booking in a short period of three years. So I think that it stacks up very well. We have been growing pretty strongly. We also have to take the cycle into consideration. We have been going through a very, very strong cycle. We have to assume that the cycle will continue in the same fashion. The market is definitely tuning towards more organized, branded corporate players who are more committed on execution and quality of delivery, timely delivery also. So I think we are very well placed, and we are very well placed to take advantage of this. And I have always mentioned that we want to grow proportionately grow with being most customer-centric as well as the most reputed developer. So we would not be going too aggressive after signing new deals. We are very choosy about the deals because real estate is a multi-year cycle business. So, we have to be careful about that. We have to be prudent about growth. So we will take our time to grow, but we are very confident given the opportunity, given the brand, given the kind of skills we are building up in our team, etc., I think we will be on a very robust growth path.

Thank you very much, sir for answering the question and best of luck.

Thank you. The next question comes from the line of Isha Shah from Nirzar Enterprise. Please go Good afternoon and congratulations on a good set of numbers in NCR and Bangalore. I have two questions. First one is Financial Year ‘25-26 and '26-27, how many and which projects will be getting completed and delivered? And second question in Financial Year ‘25 projects that we have added but not launched how much money have we invested on our own projects and in JDA, say the upfront investment and advance? So these are my two questions.

Okay. Isha, so I think I had mentioned to you about the projects which are getting completed I think there is not much happening in '26, only the balance inventory which is to be sold and some spill over from the last year units which are completed but customers have not taken possession, have not paid up to 80%, those are the ones where we are going to recognize EBITDA for the current year, which is not very substantial. The following year, I think we will be attempting to recognize revenue for our projects in Bangalore, Birla Tisya and also for a new phase of Birla Navya. So that is in the next financial year.

Okay. So they would be completed and delivered? That is right.

Okay, okay. And for second question, sir?

Second question was on the launch. So there is a list of the projects we have added. So we have added - But not launched. Yes, I want to know basically, there are projects that we have added but we have not launched. So how much money have we invested on our own projects and in JDA like the upfront investment and advance that we have invested?

So Birla Arika of course we have launched. So I will not speak about it. That was the project which was acquired this financial year itself, and we turned it around in less than nine months. Manjri is the other project we launched last year, which was deferred outright, deferred is a long payment schedule, I think we have paid roughly about Rs.200 crores there. Boisar is an outright project. Maybe we can get you these numbers offline. Sector 71 was there, which is again an outright. Then Worli, the new land 10-acres we acquired, which we invested about Rs.1,200 crores.

So this comes to approx Rs.1,500 crores like we would have invested upfront?

Roughly yes. That is right.

Okay. We have invested and we have not yet launched. Okay. Okay. Thank you, sir.

Thank you. The next question comes from the line of Sagar Shah from FIN Research. Please go So two things, sir. I mean, is it safe to assume that major deliveries would be from FY28 onwards, sir?

Yes, I mean Worli will start from FY28, Tower A. That will be a big, big completion. Significant delivery milestone for us. By '29, sir? '28 I said no. Is that right? For both the towers in '28? There is a gap of a year between them.

Okay. I heard your comments on redevelopment. Is it safe to assume to understand from what you said you are bullish on the process redevelopment in South Mumbai where your peers have been very aggressive sir, Walkeshwar, South Mumbai area?

Yes, that is one of our target markets; South Mumbai, Bandra, Juhu, Santa Cruz.

Because I believe Walkeshwar is one project and Malabar Hill, I mean also you are fairly aggressive, right, sir? Yes, yes, yes. What is the outlook on redevelopment?

The next question comes from the line of Ankit Bajaj from CARE Ratings. Please go ahead.

Yes. Good afternoon, sir. First of all, congratulations on a strong set of sales and collection. Sir, just wanted your guidance going ahead on net debt-to-equity, sir?

I think in the beginning I mentioned that right now it is about 0.92. So I think to give you an estimate of future net debt-equity would depend on when I get my payment from the sale of the paper business and probably that time, as I mentioned, we would be retiring about Rs.2,000 crores of debt from the amount that we receive. So hopefully at that time the debt would come down to about Rs.1,500 crores.

So that would be almost less than half of our equity So plus of course we will have cash balance. So technically we almost will be zero debt at that particular time.

Okay. Sir, just wanted to understand because there are substantial projects that we will be launching in this current financial year. So you will be tying-up some new debts for these launches as well?

As I said, from Rs.3,500 crores of outstanding debt, we will be repaying Rs.2,000 crores of debt from the Rs.3,500 crores that we receive from the paper business. So even if you consider some capital gain, tax, payment, etc., we will still be having some Rs.1,200, Rs.1,300 crores in our treasury. So that probably will be used for any acquisitions that we plan in the near future. And if we still require more amount, at that time we will be doing fresh borrowings. So it all depends on how much is needed for the near future for acquisitions over and above the amount lying in our treasury from the money that we receive from the sale of paper business. Okay. Thank you, sir.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing comments.

Thank you, all for participating in this Earning Con Call. If you have any further questions or would like to know more about the company, please reach out to our IR Manager, Valorem Advisors. Thank you for all your interest in our company.

Thank you, sir. Ladies and gentlemen, on behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us and you may now disconnect your lines.